No country could remain in isolation after the global interdependence of trade has increased and a fall in country like U.S.A that act as a supreme power will definitely affect other countries. The Indian benchmark that was expected to display some firecracker after closing near life-time high levels is performing lackluster as global markets are not performing well. Of all indices, Nifty PSU Banks lost more than 3% in today’s session. Things that run on steroids fall faster after ceasing their intake, which could be witnessed in PSU stocks as the Street is expecting no infusion of liquidity for re-capitalization of banks in coming budget and PSU stocks fell like a house of cards. On daily scale, Nifty PSU bank has witnessed some long liquidation after sensing resistance from 3,435.2 levels. The index is expected to consolidate at these levels for a few days. RSI is trading near 59 levels while Awesome oscillator is trading in an oversold zone. Although Awesome oscillator and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Punjab National Bank: Top loser in today’s session is trading at 82, 4.87% below from its previous close. The company has posted net losses that shrink to Rs. 4750 crores. NII numbers increased 37.11%. Provisions and contingencies fall by 50%.
- State Bank of India: India’s largest PSU bank has erased 3.19% in today’s session. The bank has put Rs. 230 crores as NPA at a haircut up to 79%. There has been a block deal of 185,173 shares on May 27, 2019.
- Allahabad Bank: The stock is trading at 45.50, 2.57% below from its previous close. The stock is trading below 30 days Exponential Moving Average. The bank has cut its lending rate by 5 basis points.